Canada hits back at Trump with 'Dollar-for-Dollar' retaliation to 50% U.S. tariffs
The USTR compared Canada's response to Trump's trade policies with China's approach
Published August 22, 2026
Canadian Prime Minister Mark Carney has announced equal retaliation to the U.S. tariffs on Canadian goods after the two countries failed to reach a trade agreement. The longstanding allies have accused each other of derailing the days of progress.
The U.S. imposed a 50% tariff on goods coming from its second-largest trading partner after Mexico.
Now, the Canadian PM has vowed retaliation, saying Canada would respond with “dollar to dollar” against the new U.S. tariffs.
In a post on X, U.S. Trade Representative alleged that Canada declined to finalise the trade deal under the agreement earlier.
It described Canada’s actions in response to President Donald Trump’s Trade program as similar to those taken by China.
The post read: “The U.S. offer was also forward looking, and included a historic economic and national security partnership to cooperate on export controls, combat transshipment, enhance digital trade, and align certain external tariffs.”
It added that Canada missed an opportunity to partner with the fastest growing economy of G7.
Reacting to the new tariffs on $20 billion worth exports to the U.S. which went into effect on Saturday, PM Carney said: "I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa.”
He continued, “They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute."
He said last-minute changes in the U.S. proposed terms were "unfair, uneconomic" and called into question the reliability of any deal.
